Governors of Nigeria’s 36 states have agreed to explore financing options for the expansion of Compressed Natural Gas (CNG)-powered vehicles as part of efforts to reduce transportation costs and ease the rising prices of goods and services.

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The decision was reached on Wednesday night at the third meeting of the Nigeria Governors’ Forum (NGF) in Abuja. The governors also resolved to strengthen collaboration with private investors to accelerate vehicle conversions and expand CNG infrastructure across the country.

In a communique signed by NGF Chairman and Kwara State Governor, AbdulRahman AbdulRazaq, the forum said the proposed National Affordable CNG Transit Programme would involve state support for vehicle conversions, CNG-powered fleets and supporting infrastructure, alongside commitments from participating transport operators to reduce passenger fares.

Bayelsa State Governor, Douye Diri, said the initiative could help cushion the economic impact of fuel subsidy removal, noting that gas-powered vehicles generally have lower operating costs than petrol-powered vehicles.

“Now that the forum is going in league with the private sector to see how we can bring in CNG, it will actually reduce the cost of transportation. You know that gas is cheaper than petrol and others,” Diri said.

The governor explained that lower transportation costs could have a multiplier effect across the economy, particularly because the cost of transporting farm produce and other commodities is eventually passed on to consumers. He said reducing transportation costs could therefore help moderate the prices of food items such as yam and gari.